Coal India may get navratna tag: Soren

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New Delhi, Jan 30: Coal ministry will seriously consider recommending the name of its largest PSU Coal India Limited (CIL) for grant of the prestigious navaratna status, said newly appointed Union coal minister Shibu Soren.

The ministry will also evaluate the pros and cons of opening up the coal mining to private sector before deciding its position on the matter.

Talking to FE, Soren said that the performance of CIL was commendable in recent months, and if after an investigation the ministry found it right, it would recommend its name for grant of navaratna status.

“I do not know about the proposal in this regard. However, if CIL meets all the criterion for getting a navratna status, the ministry would strongly pursue the case,” the minister said.

CIL, which ended the year 2004-05 with a net profit of Rs 2424 crore, has already applied to Department of Public Enterprises for grant of ‘mini-ratna’ status. Senior CIL officials also feel that CIL was a fit case for the new status, with not only its important contribution for meeting the energy requirements of the country, but now also through its strong financials.

On allowing private sector participation in coal mining, Mr Soren said, “We will look all aspects of the matter before finalising our view. I have not framed any opinion on the matter.”

In his earlier sting as the coal minister, Mr Soren had opposed any move to allow private participation in coal mining. However, things have changed now with even the Prime Minister speaking of bringing more competition in the sector and increasing coal production.

Mr Soren said his first priority would be to instill confidence among people who get displaced due to mining activities. He said that the ministry would like to frame a model rehabilitation and resettlement policy for the sector, to be implemented by the state governments.